Explanatory note

These Regulations restrict a body listed in the Schedule from making a payment of a prescribed description (“exit payment”) exceeding the amount specified in section 153A Small Business, Enterprise and Employment Act 2015 (2015 c.26) (“the cap”) to an employee or office holder in consequence of leaving employment or office (“an exit”) except in the circumstances set out in these Regulations. The cap amount is currently £95,000.

Regulation 3 sets out when the restriction applies in relation to an exit payment, or exit payments arising from multiple exits occurring in a period of 28 consecutive days.

Regulation 4 sets out the sequence in which multiple exit payments are treated as having been paid.

Regulation 5 sets out the types of exit payments that are subject to the restriction and regulation 6 sets out the description of payments that are exempt from the restriction.

Regulation 7 imposes an obligation not to reduce the amount of a statutory redundancy payment or the equivalent payment paid to civil servants or employees of certain prescribed public offices.

Regulation 8 imposes an obligation on a prescribed body to make an alternative type of payment in the event it is prevented from making a payment relating to early retirement by these Regulations.

Regulation 9 imposes an obligation on a person entitled to receive an exit payment to inform other employers or specified bodies in relation to holder of an office of prescribed matters.

Regulations 10 and 11 set the circumstances in which the restriction to make an exit payment in excess of the cap amount may be relaxed and regulation 12 imposes a duty on the body relaxing the restriction to keep records and publish details of prescribed matters.

A full impact assessment has not been provided for these Regulations as no, or no significnat impact on the private, voluntary or public sectors is foreseen.